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Wed 16 Sep 2009 02:43 PM

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Oman awards Duqm power deals

Contract awards pave the way for the first coal-fired electricity generation plant in the country.

Oman awards Duqm power deals
POWER DEAL: Duqm will be Omans first coal-fired power plant. (Getty Images)

Oman has awarded technical and financial advisory contracts for the 1,000 megawatts Duqm power station, paving the way for the first coal-fired electricity generation plant in the Gulf Arab state, officials said on Wednesday.

"We confirm that we got the technical advisory contract for the Duqm power plant," Jim Liedh, a consultant based in Muscat at Worsely Parsons told Reuters, adding the deal was worth 324,638 rials ($843,216).

A KPMG official also confirmed that the company won a financial advisory deal worth 418,511 rials.

"The two contracts mean that we are going ahead with Oman's first coal-fired power project at Duqum," an official from the state-run Public Authority for Electricity and Water told Reuters.

Last month, Oman said it will privatise existing power stations and invest about $8bn in new power projects to diversify away from its oil-based economy.

Oman is developing five projects aimed at boosting electricity generation, where demands are rising about 15 percent annually.

Total consumption to June 2009 reached 3,600 megawatts, 16 percent more than the same period in 2008, year on year, according to Public Authority for Electricity. (Reuters)

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